To add insult to injury, the hedge funds charge 20% of the incentive plus 2% of management and yet only average 1-2% above the mutuals if looking at an average basis.
Well don't invest in a hedge fund that charges 20% management fees. Say what you want to say but Vanguard isn't half bad.
LOL!! ------ Excerpt: Bogle's reputation was built on low-cost index funds. Active fund managers hate index funds because there's not enough "vigorish" in index funds. For example, in 2004 the $101 billion Vanguard 500 Index Fund (VFINX: news, chart, profile) received almost $180 million in operating fees. Shareholders in the actively managed Fidelity Magellan (FMAGX: news, chart, profile) paid almost $400 million in expenses on $57 billion in assets. And yet Vanguard's 10.7% return beat Magellan's 7.5% in 20 ----------- Best bet is learn to manage your own money. It's not rocket science.
The fact of the matter is that even with charging the fees they still beat mutual funds, thats why they can charge the fees.